One of China’s leading economists has called for more private banks in the country as part of efforts to remedy a lack of financial inclusion.
Huang Yiping (黄益平), deputy-head of the National School of Development at Peking University and chair of the Digital Finance Research Centre, said in an interview with state-owned media that China’s financial sector still suffered from pronounced structural imbalances.
“In terms of volume China’s financial system is extremely large, and considered large by international standards, ranking at the forefronts in terms of the banking system and capital markets,” said Huang in an interview with National Business Daily.
“Its problems are structural – the most pronounced issues being services for small and medium-sized enterprises and innovative enterprises, as well as insufficient financial inclusion.”
Huang calls for China to permit the creation and growth of more private banks in China in order to help remedy these structural shortcomings.
“In future when the conditions are right, I of course support privately operated banks…there should be more non-public financial institutions.
“This itself is a major sign of a mature and healthy financial system.”
China is currently host to 19 privately operated banks, although no new private lenders have been established for the past two years.